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Is Christmas Rally a good time to invest in the Stock Market for 2019?

We are in the final four weeks of 2019 and the stage is set for a rally to finish off the year.

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Is Christmas Rally a good time to invest in the Stock Market for 2019?

We are in the final four weeks of 2019 and the stage is set for a rally to finish off the year. This is a festive tradition that spans across the world. Although more prevalent in the U.S, it presumes that the stock markets start to fly as the year ends. History suggests it’s real, with a rally happening in 25 of the past 30 years and we’re starting to feel the Santa Rally buzz here in Nigeria.

This may be attributed to the positive money flows in the last few weeks of December and the first few weeks of January. This is no doubt one of the excellent months to stay invested in the stock market for the year 2019.

A walk Down Memory Lane

The Santa Claus rally first became a thing in 1972 when Yale Hirsch recorded it in his Stock Trader’s Almanac. He described it as a calendar year effect which involves a rise in stock prices during the last 5 trading days in December and the first 2 trading days in the following January. Yale Hirsch noticed a seasonal behavioral change in investors which led to a spiral of events – increased year-end bonuses led to increased consumer spending which caused a gain in stock performance which made investors scramble for the wave putting more money back in companies who then increased bonus payouts.

Why the Santa Rally?

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There are no universally accepted reasons for the rally although a few elements, ranging from pure emotion to deep analysis – can be said to contribute to it. This statistically proven phenomenon occurs when markets put on a festive front ahead of the holiday period.

Is Christmas Rally a good time to invest in the Stock Market for 2019?

Some have pinned it on a combination of festive cheer and annual bonuses. You could also make the case that the Santa Rally is almost a self-fulfilling prophecy as investors anticipate it and try to get in ahead of everyone else unless something major prevents it.

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The rally is sometimes attributed to the following:

  1. Increased investor purchases in anticipation of the January effect
  2. Lighter volume due to holiday vacations makes it easier to move the market higher
  3. Short sellers / pessimistic investors tend to take vacations around the holidays
  4. The general Holiday spirit sees people pumping money into the market.

While history offers enough evidence that stock prices will always defy predictions, there’s an observable seasonality to markets.

Does the Santa Rally always occur? General Outlook

As the saying goes, lightning does not strike twice in the same place, which should signify a positive rally in 2019. Statistically speaking, the chances of riding a rally is high. More than two-thirds (78%) of the Decembers dating back to the 1960s have resulted in positive gains for shareholders. Santa predicts the S&P 500 will grow another 3% before the year-end 2019 as compensation for the 9% tumble in December 2018.

What does the Santa Rally mean for the Nigerian Market?

Although Nigeria’s economy has grappled with low growth since recovery from recession four years ago, there is an air of optimism especially in an emerging market such as the Nigerian Stock market with over one hundred and eighty quoted companies covering different sectors.

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Data from the National Bureau of Statistics (NBS) shows Nigeria’s gross domestic product (GDP) grew by 2.28% in the third quarter of 2019. According to them, the extension of credit by banks is expected to entice consumers and investors to increase consumption and buying equities as they spend more this season. Banks have also started rallying, so we expect to end the year with a firework show.

Nigerian stocks rose to four-week high as 5 banks’ share prices rallied in November. Investors sent a strong signal that the market may be ending on a highly bullish note at the end of the year.

As of 22nd November 2019:

  • Access bank gained 36.73% MoM and the year-to-date figure stood at 47.79%
  • FCMB gained 30.62% MoM to close at N2.09 with 10.58% YTD
  • UBA reported impressive gains as investors gained 31.58% MoM
  • GTBank gained 11.79%, MoM
  • FBNH, the oldest of the FUGAZ Bank also gained 41.51% MoM

These results are suggesting there may be a significant upside for a sustained bullish rally.

Are Stock Dividends higher than T-bill Yields?

The dividend yield of banking stocks is arguably higher than T-Bill yields. This is because the OMO market has been blocked off to local investors, hence, local corporates and individuals looking to invest their funds have only the NTB market to turn to where yields are currently too low and unattractive. In order to look for more profitable opportunities, they may look to the equities market, particularly stocks with high dividend yields like some banking stocks, e.g. Zenith, Stanbic, GTB, Etc.

Wealth.ng offers you an optimum selection of stocks trading on the Nigerian Stock Exchange. You can invest in dividend-yielding stocks, with high liquidity to achieve the right balance of risk and returns on your portfolio. So, if you’re aiming to get your finances on track, your slice awaits you.

Some have pinned it on a combination of festive cheer and annual bonuses. You could also make the case that the Santa Rally is almost a self-fulfilling prophecy as investors anticipate it and try to get in ahead of everyone else unless something major prevents it. The rally is sometimes attributed to the following: 1. Increased investor purchases in anticipation of the January effect 2. Lighter volume due to holiday vacations makes it easier to move the market higher 3. Short sellers / pessimistic investors tend to take vacations around the holidays 4. The general Holiday spirit sees people pumping money into the market. While history offers enough evidence that stock prices will always defy predictions, there's an observable seasonality to markets. Does the Santa Rally always occur? General Outlook As the saying goes, lightning does not strike twice in the same place, which should signify a positive rally in 2019. Statistically speaking, the chances of riding a rally is high. More than two-thirds (78%) of the Decembers dating back to the 1960s have resulted in positive gains for shareholders. Santa predicts the S&P 500 will grow another 3% before the year-end 2019 as compensation for the 9% tumble in December 2018. What does the Santa Rally mean for the Nigerian Market? Although Nigeria’s economy has grappled with low growth since recovery from recession four years ago, there is an air of optimism especially in an emerging market such as the Nigerian Stock market with over one hundred and eighty quoted companies covering different sectors. Data from the National Bureau of Statistics (NBS) shows Nigeria's gross domestic product (GDP) grew by 2.28% in the third quarter of 2019. According to them, the extension of credit by banks is expected to entice consumers and investors to increase consumption and buying equities as they spend more this season. Banks have also started rallying, so we expect to end the year with a firework show. Nigerian stocks rose to four-week high as 5 banks' share prices rallied in November. Investors sent a strong signal that the market may be ending on a highly bullish note at the end of the year. As of 22nd November 2019: • Access bank gained 36.73% MoM and the year-to-date figure stood at 47.79% • FCMB gained 30.62% MoM to close at N2.09 with 10.58% YTD • UBA reported impressive gains as investors gained 31.58% MoM • GTBank gained 11.79%, MoM • FBNH, the oldest of the FUGAZ Bank also gained 41.51% MoM These results are suggesting there may be a significant upside for a sustained bullish rally. Are Stock Dividends higher than T-bill Yields? The dividend yield of banking stocks is arguably higher than T-Bill yields. This is because the OMO market has been blocked off to local investors, hence, local corporates and individuals looking to invest their funds have only the NTB market to turn to where yields are currently too low and unattractive. In order to look for more profitable opportunities, they may look to the equities market, particularly stocks with high dividend yields like some banking stocks, e.g. Zenith, Stanbic, GTB, Etc. Wealth.ng offers you an optimum selection of stocks trading on the Nigerian Stock Exchange. You can invest in dividend-yielding stocks, with high liquidity to achieve the right balance of risk and returns on your portfolio. So, if you’re aiming to get your finances on track, your slice awaits you.

For an investor looking to hold something for the long term, it makes equities relatively attractive because it carries a higher value now.

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Final Note

Investing is a long-term game, and Christmas comes but once a year. With stock performance at the very end of the year, there is often more at stake than just feeling good around the holidays. It is important that you formulate your investing or trading strategy and take sound advice from financial advisors to minimize risk and maximize profits.

NM Partners represent articles published in paid partnerships with corporate organisations. They include press releases, targeted content, and other forms of corporate communications on behalf of our Paid Partners.

1 Comment

1 Comment

  1. Stanley

    December 4, 2019 at 4:58 pm

    How about investors selling off some of their holdings to meet family Christmas obligations as well as prep for kids’ school fees in January. So, I expect the market to tank a bit during this yuletide and New year instead, especially with the overall below par performance of the NGSE and the Nigerian economy in 2019. However, I also expect the rally your article predicted to begin towards the 3rd and 4th weeks of Jan 2020 when most of the expenses I highlighted above have gone by.

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Remitano launches Mission, a new online job market for crypto lovers

Remitano introduces Missions, a simple, short-term task platform that anyone can do and get paid for.

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Remitano, global P2P crypto exchange, has just launched a new online job market – Mission, the platform’s latest element in its push to realize its full potential and open a new window of employment opportunities to crypto users.

Missions are simple, short-term tasks that anyone can do and get paid for. For example, “Share a Remitano post on Facebook.” The new online job market will provide a range of ‘easy and quick apply’ jobs (mission) for crypto lovers wishing to have additional earnings. This way, applicants can skate through the application process and land jobs fast.

As of the August 2020 announcement, Remitano already released a set of guidelines for users looking to take advantage of the offerings. The guide includes:

  • Highlights of the missions
  • Steps to apply
  • Application requirements

Complete a Mission and Get Instant Crypto

While the internet has become the most vital channel for personal recruiting, and people consider different aspects of a job to be fulfilling, some common elements include work-life balance, growth, and a strong work community. Remitano’s newest mission is geared towards promoting similar values and keeping like–minds meaningfully engaged with the crypto community.

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Furthermore, Remitano is thrilled to collaborate with greenhorns interested in building along with it. Hence, if you’re new to cryptocurrency trading and wish to maximize your earnings or want a legitimate way to get instant crypto without purchasing it, you can create a free Remitano account, and join the mission for the next job on hand.

Why You Might Want to Join Remitano’s Mission

  • A side job: If you’re looking to expand your income or even monetize your free time, missions are ready for the taking. You will be poised to earn extra cash by helping to present Remitano’s ideas across the internet.
  • More remote flexibility: with more people working from home, having a practical and comfortable working space is more important than ever. Remitano encourages this by providing digitized work environments for its employees’ remote adaptability.
  • Unlimited geography: missions are for everyone, no matter where they are. Job seekers can access available online jobs from anywhere and apply for roles they fit into.
  • Streamlined application: applicants only need to prep and submit requisites and certificates, allowing you to walkover face-to-face interviews
  • Instant credit of cryptocurrency: once a mission is completed, successful candidates will receive instant crypto remuneration to their Remitano wallets.

About Remitano

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Remitano is a product of Babylons Solutions Limited based in Seychelles. As a fast-moving marketplace, Remitano’s purpose is to offer a robust, quality trading experience to all users. With necessary safety standards in place, buyers and sellers can come together, store, trade, and retrieve assets, thus minimizing challenges common to crypto exchanges.

Launched in 2014, Remitano is a global cryptocurrency exchange serving international markets, such as Malaysia, China, Nigeria, Vietnam, Australia, Cambodia, and Indonesia.

Got Questions?

Reach out to Remitano via:

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Are SMEs the solution to Nigeria’s wailing economy?

MTN Nigeria commenced The Revv Program to mitigate the effects of the pandemic on SMEs across Nigeria.

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The outbreak of the COVID-19 pandemic this year has been a major disaster to several sectors including the financial sector. The ensuing lockdown affected the global economy tremendously. SMEs in Nigeria were among the worst hit.

According to a survey published by the Fate Foundation and BudgIT on the ‘Impact of COVID-19 on Nigerian SMEs’, 94.3% of the total 1,943 respondents said the pandemic has negatively affected their business.

Back in 2017, the Small and Medium Enterprises (SME) sector comprising approximately 40 million SMEs contributed an estimated 48% to Nigeria’s Gross Domestic Product (GDP), and employed 84% of the country’s entire workforce, according to a National Bureau of Statistics (NBS) report released in 2018.

GDP is an important indicator of a country’s economic power. According to the NBS, Nigeria’s 2017 GDP was worth about N113.7 billion. Of that amount, the SME sector contributed 48%; that’s two percent short of half the total amount. This value provided by SMEs, which ensures the smooth running of the country, is why they are referred to as the bedrock of the economy.

But this was before the pandemic and the accompanying lockdown that resulted in an unprecedented economic tailspin affecting business operations, consumer spending, loss of jobs, and livelihoods. According to the Fate Foundation and BudgIT survey, off the businesses still managing to stay afloat, 72.1% cannot find the cash flow to continue running their business, and 59.2% are struggling to increase their revenue base.

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When asked in what area they want to be supported, 72.1% answered with cash flow; 67.7% said they’ll need support to make sales; 89.4% want the federal government to provide them with funding; 33.8% need access to markets; 74% want the private sector to support with funding; and 62.9% want business support.

Recently, MTN Nigeria commenced an initiative tagged The Revv Program to mitigate the effects of the pandemic on small businesses across Nigeria. Working with relevant stakeholders, subject-matter experts, and the company’s executives, the program aims to support over 10,000 small businesses.

At the virtual launch, Chief Executive Officer, MTN Nigeria, Ferdi Moolman, called on large corporates to join MTN and “strongly position themselves to support SMEs as a foundation to the growth of a stronger economy going into 2021 and beyond”, saying “The Revv Programme is our way of standing with SMEs in their journey to rise through these challenging times.”

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Adopting a four-pronged approach that includes masterclass sessions, support with productivity tools, access to market and advisory initiatives, the programme seeks to help SMEs relearn, readjust, and retool their businesses. The masterclasses which have been held weekly since August 18 focuses on core areas of business management as part of a broader strategy to uplift the SMEs.

This will be followed by the selection of The Y’ello 200 (two hundred top-performing SMEs from the sessions) that will enjoy exclusive access to a broad range of technology and productivity tools and services absolutely free, for a period of six months. They will also receive productivity support to enhance their business performance, in addition to access to MTN’s media assets for product marketing, which will open up new market opportunities for their business’ growth and expansion.

The majority of the small businesses affected by the pandemic are facing funding problems.  The first masterclass, themed “Accessing the Right Funding for Your Business”, addressed this need. MTN Nigeria’s Chief Financial Officer (CFO), Modupe Kadri, together with other subject-matter experts threw light on ways SMEs can access funding from investors, and the role a properly managed cash flow system plays. “Anybody that wants to advance some securities to you will want to know the strength of your cash flow management; how you generate the income streams and how you’re going to keep the lead on that. The same thing also applies to your costs”, Kadri said.

In a subsequent masterclass themed, “Setting Up Your Business for Success: The Technology Advantage”, the Chief Enterprise Business Officer of MTN Nigeria, Lynda Saint-Nwafor shared that the concern for SMEs is at the core of The Revv programme. “We have the interest of SMEs at heart and whilst we do not provide all the services that are applicable, we are willing to partner with organisations that provide access to technology tools that are relevant to SMEs on a platform that makes it easy for them to access at the right price”, according to Lynda.

The Revv Programme will not be the first time MTN is supporting small businesses in the country. In 2018 the company launched the viral “Man In The Box” campaign with commendable outcomes for SMEs in the country. The idea was to support small businesses with technology solutions and create awareness for them by showcasing their businesses in the “Box” to the entire world.

For 24 hours and for free, selected businesses were showcased within the “Box” on LED screens, and across MTN’s social media platforms. Man In The Box was a huge success; it awakened Nigerians to the enormous untapped possibilities that litter the SME space. SMEs that were featured in the “Box” told amazing testimonies of how they witnessed growth and increased patronage of their businesses.

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As we transit to a post-COVID environment, small businesses that had their business affected by the pandemic and are looking for new sources of income will have to pay attention to the programme. The good thing is, it does not matter how bad the pandemic may have affected their success, business will soon shape up for SMEs, especially the 10,000 small businesses to benefit from The Revv Programme. And with that, they will continue to provide the much-needed backbone for Nigeria’s economy.

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How to open free Bitcoin wallet in Nigeria

Cardtonic is one of the platforms that provides a free bitcoin wallet address in Nigeria.

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How to open free Bitcoin wallet in Nigeria

When it comes to cryptocurrencies such as Bitcoin, a bitcoin wallet address is very essential. A Bitcoin wallet address is made up of a string of 26-35 alphanumeric characters, that allows you to send and receive bitcoin.

Any bitcoin address can be used to transfer cryptocurrency to any other address on the network, provided the sender’s wallet software supports that address type. All addresses represent a destination on the Bitcoin network.

READ: BTC bounty: 69,000 Bitcoins worth $700 million waiting for you

How To Open Free Bitcoin Wallet In Nigeria

Creating a bitcoin wallet in Nigeria is very easy. Wallets come on different platforms with different features in Nigeria. However, it’s advisable you always go for the best. This guide will help you to find the best Bitcoin wallet in Nigeria for you.

How Do I Get A Free Bitcoin Wallet Address In Nigeria?

There are various ways to get a free wallet address in Nigeria. Prominent among them is by signing up to a platform that offers a free bitcoin wallet address.

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Cardtonic is one of the platforms that provides a free bitcoin wallet address in Nigeria. It is an online broker trading platform that facilitates the buying and selling of bitcoin, as well as gift cards. The bitcoin/gift card trading platform is designed to aid the buying and selling of bitcoin.

READ: Ethereum whale transfers 200,000 ETH, as price drops to $387

Get Free Bitcoin Wallet Address on Cardtonic

Cardtonic now offers Bitcoin Wallet Address for all users. The idea is that for each Bitcoin transaction, users will generate a unique, single-use address to provide to senders.

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Why Cardtonic Offers The Best Bitcoin Wallet Address In Nigeria

Cardtonic has a nationwide reach, serving traders across Nigeria. Safe to say that it is also one of the largest gift card and Cryptocurrency exchange platforms in Nigeria.

Cardtonic deals in bitcoin and gift cards exchange, and at the same time provides a bitcoin wallet address that is of blockchain standard.

It is also one of the foremost bitcoin trading sites in Nigeria as it has greatly simplified the process for customers. The competitive advantage ranges from offering one of the fastest transaction times to having an extensive customer support system that is always on hand to provide assistance, not leaving behind the amazing bitcoin exchange rates. Thus, Cardtonic is raising the bar on bitcoin trading.

READ: Why Africans are fast using Bitcoin for payment transfers

Therefore, with all the ease around bitcoin trading on Cardtonic, whether you are trading little or large, you’d like to get value and ease for them. And apart from the fact that there are a limited number of platforms that have such features in Nigeria, not every service can be trusted in terms of security, efficiency, and exchange rate. All these can be guaranteed with Cardtonic.

How To Create Bitcoin Wallet Address On Cardtonic

To create an address on Cardtonic, follow the steps below:

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  1. Visit the website or download the mobile app on your android or iOS.
  2. As a user, proceed to the bitcoin trade page and generate your bitcoin address
  3. The address becomes permanently yours. You can receive bitcoin into your address at any time.
  4. Any amount of bitcoins sent to your address will be automatically added to your naira balance at the corresponding rates.
  5. Bitcoin trades on Cardtonic are completely automated and require no human or manual intervention.

Get Started

Download Cardotnic Mobile App: https://play.google.com/store/apps/details?id=com.cardtonic.app

Website: Cardtonic.com

Mail: Support[@at]cardtonic.com

Phone/Whatsapp: 07060502770

Instagram: @Cardtonic

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